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Ruth's Hospitality Group

Nasdaq:RUTH
Snowflake Description

Solid track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RUTH
Nasdaq
$577M
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Ruth's Hospitality Group, Inc., together with its subsidiaries, develops, operates, and franchises fine dining restaurants under the Ruth’s Chris Steak House name. The last earnings update was 16 days ago. More info.


Add to Portfolio Compare Print
  • Ruth's Hospitality Group has significant price volatility in the past 3 months.
RUTH Share Price and Events
7 Day Returns
-6.1%
NasdaqGS:RUTH
-2.1%
US Hospitality
-1%
US Market
1 Year Returns
-36%
NasdaqGS:RUTH
-6.5%
US Hospitality
-0.4%
US Market
RUTH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ruth's Hospitality Group (RUTH) -6.1% -12.6% -20% -36% 31.6% 82.1%
US Hospitality -2.1% -5.7% -3.7% -6.5% 31.2% 16.6%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • RUTH underperformed the Hospitality industry which returned -6.5% over the past year.
  • RUTH underperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
RUTH
Industry
5yr Volatility vs Market

Value

 Is Ruth's Hospitality Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ruth's Hospitality Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ruth's Hospitality Group.

NasdaqGS:RUTH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:RUTH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.896 (1 + (1- 21%) (46.15%))
1.149
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.149 * 5.96%)
9.58%

Discounted Cash Flow Calculation for NasdaqGS:RUTH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ruth's Hospitality Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:RUTH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.58%)
2020 47.14 Est @ 3% 43.02
2021 48.51 Est @ 2.92% 40.40
2022 49.90 Est @ 2.86% 37.93
2023 51.31 Est @ 2.82% 35.59
2024 52.75 Est @ 2.8% 33.39
2025 54.21 Est @ 2.78% 31.31
2026 55.71 Est @ 2.76% 29.37
2027 57.24 Est @ 2.75% 27.54
2028 58.81 Est @ 2.75% 25.82
2029 60.43 Est @ 2.74% 24.21
Present value of next 10 years cash flows $328.57
NasdaqGS:RUTH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $60.43 × (1 + 2.73%) ÷ (9.58% – 2.73%)
$906.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $906.42 ÷ (1 + 9.58%)10
$363.14
NasdaqGS:RUTH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $328.57 + $363.14
$691.71
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $691.71 / 29.27
$23.63
NasdaqGS:RUTH Discount to Share Price
Calculation Result
Value per share (USD) From above. $23.63
Current discount Discount to share price of $19.70
= -1 x ($19.70 - $23.63) / $23.63
16.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ruth's Hospitality Group is available for.
Intrinsic value
17%
Share price is $19.7 vs Future cash flow value of $23.63
Current Discount Checks
For Ruth's Hospitality Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ruth's Hospitality Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ruth's Hospitality Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ruth's Hospitality Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ruth's Hospitality Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:RUTH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $1.41
NasdaqGS:RUTH Share Price ** NasdaqGS (2019-08-16) in USD $19.7
United States of America Hospitality Industry PE Ratio Median Figure of 72 Publicly-Listed Hospitality Companies 22.84x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ruth's Hospitality Group.

NasdaqGS:RUTH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:RUTH Share Price ÷ EPS (both in USD)

= 19.7 ÷ 1.41

13.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ruth's Hospitality Group is good value based on earnings compared to the US Hospitality industry average.
  • Ruth's Hospitality Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ruth's Hospitality Group's expected growth come at a high price?
Raw Data
NasdaqGS:RUTH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
3.4%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 53 Publicly-Listed Hospitality Companies 1.63x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NasdaqGS:RUTH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.93x ÷ 3.4%

4.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ruth's Hospitality Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ruth's Hospitality Group's assets?
Raw Data
NasdaqGS:RUTH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $3.37
NasdaqGS:RUTH Share Price * NasdaqGS (2019-08-16) in USD $19.7
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.09x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NasdaqGS:RUTH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:RUTH Share Price ÷ Book Value per Share (both in USD)

= 19.7 ÷ 3.37

5.85x

* Primary Listing of Ruth's Hospitality Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ruth's Hospitality Group is overvalued based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Ruth's Hospitality Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Ruth's Hospitality Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ruth's Hospitality Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ruth's Hospitality Group expected to grow at an attractive rate?
  • Ruth's Hospitality Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ruth's Hospitality Group's earnings growth is positive but not above the United States of America market average.
  • Ruth's Hospitality Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:RUTH Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:RUTH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 3.4%
NasdaqGS:RUTH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 7.4%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 18.6%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:RUTH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:RUTH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 506 67 43 4
2019-12-31 469 67 42 4
NasdaqGS:RUTH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 456 73 42
2019-03-31 456 75 42
2018-12-30 452 78 42
2018-09-30 449 74 36
2018-07-01 435 66 35
2018-04-01 426 63 33
2017-12-31 415 69 30
2017-09-24 398 62 30
2017-06-25 397 67 32
2017-03-26 390 66 31
2016-12-25 386 56 31
2016-09-25 383 54 30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ruth's Hospitality Group's earnings are expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
  • Ruth's Hospitality Group's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:RUTH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Ruth's Hospitality Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RUTH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 1.49 1.52 1.44 4.00
2019-12-31 1.41 1.43 1.36 4.00
NasdaqGS:RUTH Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 1.41
2019-03-31 1.42
2018-12-30 1.40
2018-09-30 1.22
2018-07-01 1.15
2018-04-01 1.09
2017-12-31 1.00
2017-09-24 0.99
2017-06-25 1.03
2017-03-26 0.99
2016-12-25 0.97
2016-09-25 0.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ruth's Hospitality Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ruth's Hospitality Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ruth's Hospitality Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ruth's Hospitality Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ruth's Hospitality Group's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ruth's Hospitality Group's year on year earnings growth rate has been positive over the past 5 years.
  • Ruth's Hospitality Group's 1-year earnings growth exceeds its 5-year average (20.5% vs 9.5%)
  • Ruth's Hospitality Group's earnings growth has exceeded the US Hospitality industry average in the past year (20.5% vs -8.7%).
Earnings and Revenue History
Ruth's Hospitality Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ruth's Hospitality Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RUTH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 456.07 41.62 53.26
2019-03-31 455.55 41.88 54.60
2018-12-30 452.33 41.60 54.27
2018-09-30 449.28 36.38 52.93
2018-07-01 435.43 34.55 50.21
2018-04-01 425.81 32.80 47.20
2017-12-31 414.82 30.25 46.82
2017-09-24 398.35 30.07 47.81
2017-06-25 396.96 31.81 47.86
2017-03-26 389.60 30.96 46.65
2016-12-25 385.95 30.76 44.88
2016-09-25 383.07 30.44 44.75
2016-06-26 379.58 29.57 44.15
2016-03-27 377.98 30.28 43.77
2015-12-27 373.43 30.17 42.20
2015-09-27 367.63 29.93 40.32
2015-06-28 361.13 29.49 38.20
2015-03-29 353.09 28.49 36.05
2014-12-28 346.10 26.71 36.02
2014-09-28 277.85 22.73 32.04
2014-06-29 290.70 23.55 33.85
2014-03-30 306.73 24.67 36.99
2013-12-29 322.35 24.49 37.84
2013-09-29 406.00 23.25 44.13
2013-06-30 403.70 21.12 42.90
2013-03-31 401.74 19.17 40.55
2012-12-30 310.29 -20.17 35.31
2012-09-23 381.35 -22.11 35.59

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ruth's Hospitality Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Ruth's Hospitality Group used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Ruth's Hospitality Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ruth's Hospitality Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ruth's Hospitality Group has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ruth's Hospitality Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ruth's Hospitality Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ruth's Hospitality Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Ruth's Hospitality Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ruth's Hospitality Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ruth's Hospitality Group Company Filings, last reported 1 month ago.

NasdaqGS:RUTH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 98.11 45.00 3.15
2019-03-31 98.65 39.00 3.12
2018-12-30 90.13 41.00 5.06
2018-09-30 89.29 54.00 4.88
2018-07-01 87.79 50.00 3.05
2018-04-01 87.59 43.00 2.17
2017-12-31 79.50 50.00 4.05
2017-09-24 80.37 30.00 4.86
2017-06-25 86.56 21.00 5.23
2017-03-26 87.76 14.00 3.05
2016-12-25 79.01 25.00 3.79
2016-09-25 75.44 38.00 3.95
2016-06-26 80.93 30.00 3.55
2016-03-27 95.13 8.00 2.66
2015-12-27 97.90 0.00 3.10
2015-09-27 101.22 5.00 2.79
2015-06-28 106.03 0.00 5.13
2015-03-29 102.05 3.00 3.42
2014-12-28 96.31 13.00 4.30
2014-09-28 94.42 30.00 3.49
2014-06-29 106.79 22.00 3.21
2014-03-30 104.47 22.00 3.72
2013-12-29 100.65 19.00 10.59
2013-09-29 98.88 37.00 5.28
2013-06-30 96.98 40.00 5.53
2013-03-31 90.74 43.00 6.32
2012-12-30 80.73 45.00 7.91
2012-09-23 77.97 69.00 3.91
  • Ruth's Hospitality Group's level of debt (45.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (20.8% vs 45.9% today).
  • Debt is well covered by operating cash flow (162%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.1x coverage).
X
Financial health checks
We assess Ruth's Hospitality Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ruth's Hospitality Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ruth's Hospitality Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.64%
Current annual income from Ruth's Hospitality Group dividends. Estimated to be 2.64% next year.
If you bought $2,000 of Ruth's Hospitality Group shares you are expected to receive $53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ruth's Hospitality Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Ruth's Hospitality Group's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).
Upcoming dividend payment

Purchase Ruth's Hospitality Group before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:RUTH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 47 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:RUTH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.52 1.00
2020-12-31 0.52 1.00
2019-12-31 0.52 1.00
NasdaqGS:RUTH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-08-02 0.520 2.540
2019-05-03 0.520 2.245
2019-02-28 0.520 2.036
2019-02-22 0.520 2.061
2018-08-10 0.440 1.662
2018-02-21 0.440 1.642
2017-11-03 0.360 1.652
2017-07-28 0.360 1.777
2017-05-05 0.360 1.677
2017-03-08 0.360 1.820
2017-02-17 0.360 2.067
2016-10-28 0.280 1.614
2016-04-28 0.280 1.798
2016-03-04 0.280 1.583
2016-02-12 0.280 1.641
2015-10-30 0.240 1.470
2015-08-04 0.240 1.483
2015-07-31 0.240 1.383
2015-05-05 0.240 1.548
2015-05-01 0.240 1.607
2014-11-05 0.200 1.380
2014-08-01 0.200 1.782
2014-02-21 0.200 1.638
2013-11-06 0.160 1.194
2013-11-01 0.160 1.260
2013-05-03 0.160 1.334

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Ruth's Hospitality Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Ruth's Hospitality Group only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Ruth's Hospitality Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Ruth's Hospitality Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ruth's Hospitality Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ruth's Hospitality Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ruth's Hospitality Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Cheryl Henry
COMPENSATION $6,105,629
AGE 45
TENURE AS CEO 1 years
CEO Bio

Ms. Cheryl Janet Henry has been President of Ruth's Hospitality Group Inc. since July 20, 2016. She has been Chief Executive Officer at Ruth's Hospitality Group, Inc. since August 10, 2018. She served as Chief Operating Officer at Ruth's Hospitality Group, Inc. until August 10, 2018. She has been Director at Ruth's Hospitality Group, Inc. August 10, 2018. Ms. Henry served as Chief Branding Officer and Senior Vice President of Ruth's Hospitality Group Inc. from August 22, 2011 to July 20, 2016. Ms. Henry joined Ruth's in 2007 and held a variety of positions within it. She was Chief of Staff for Orlando Mayor Buddy Dyer. Ms. Henry served as the Chief Business Development Officer of Ruth's Hospitality Group Inc. from June 2007 to August 2011. Ms. Henry has served on the Board of Trustees of the Culinary Institute of America since December 2017 and on the Board of Governors of the Center for Creative Leadership since June 2017.

CEO Compensation
  • Cheryl's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Cheryl's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ruth's Hospitality Group management team in years:

2.9
Average Tenure
57
Average Age
  • The tenure for the Ruth's Hospitality Group management team is about average.
Management Team

Mike O'Donnell

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
63
TENURE
1 yrs

Cheryl Henry

TITLE
President
COMPENSATION
$6M
AGE
45
TENURE
1 yrs

Arne Haak

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
51
TENURE
8 yrs

Susan Mirdamadi

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$922K
AGE
57
TENURE
0.8 yrs

Michael Hynes

TITLE
Vice President of Accounting
TENURE
4.3 yrs

Alice Givens

TITLE
Chief Compliance Officer
TENURE
3.5 yrs

Susie Gorsline

TITLE
Chief People Officer
TENURE
3.5 yrs

Pete Beaudrault

TITLE
Vice President of Franchise Operations & Development
COMPENSATION
$572K
AGE
64
TENURE
2.3 yrs

Mark Taylor

TITLE
Vice President of Financial Planning & Analysis
Board of Directors Tenure

Average tenure and age of the Ruth's Hospitality Group board of directors in years:

2.9
Average Tenure
60
Average Age
  • The average tenure for the Ruth's Hospitality Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Cheryl Henry

TITLE
President
COMPENSATION
$6M
AGE
45
TENURE
1 yrs

Rob Selati

TITLE
Lead Director
COMPENSATION
$192K
AGE
53
TENURE
8.8 yrs

Mike O'Donnell

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
63
TENURE
8.8 yrs

Carla Cooper

TITLE
Director
COMPENSATION
$167K
AGE
68
TENURE
15.7 yrs

Steve King

TITLE
Independent Director
COMPENSATION
$171K
AGE
61
TENURE
1.6 yrs

Giannella Alvarez

TITLE
Independent Director
COMPENSATION
$164K
AGE
59
TENURE
3.5 yrs

Mary Baglivo

TITLE
Director
COMPENSATION
$162K
AGE
61
TENURE
2.3 yrs

Marie Perry

TITLE
Independent Director
COMPENSATION
$64K
AGE
54
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Ruth's Hospitality Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ruth's Hospitality Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

There's A Lot To Like About Ruth's Hospitality Group, Inc.'s (NASDAQ:RUTH) Upcoming 0.7% Dividend

Ruth's Hospitality Group's next dividend payment will be US$0.13 per share, on the back of last year when the company paid a total of US$0.52 to shareholders. … So we need to investigate whether Ruth's Hospitality Group can afford its dividend, and if the dividend could grow. … View our latest analysis for Ruth's Hospitality Group Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut.

Simply Wall St -

Does Ruth's Hospitality Group, Inc.'s (NASDAQ:RUTH) 21% Earnings Growth Reflect The Long-Term Trend?

View our latest analysis for Ruth's Hospitality Group Commentary On RUTH's Past Performance RUTH's trailing twelve-month earnings (from 30 June 2019) of US$42m has jumped 21% compared to the previous year. … Furthermore, its return on assets (ROA) of 9.8% exceeds the US Hospitality industry of 5.9%, indicating Ruth's Hospitality Group has used its assets more efficiently. … I suggest you continue to research Ruth's Hospitality Group to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for RUTH’s future growth?

Simply Wall St -

If You Had Bought Ruth's Hospitality Group (NASDAQ:RUTH) Shares Five Years Ago You'd Have Made 112%

During five years of share price growth, Ruth's Hospitality Group achieved compound earnings per share (EPS) growth of 15% per year. … We note that for Ruth's Hospitality Group the TSR over the last 5 years was 131%, which is better than the share price return mentioned above. … Before deciding if you like the current share price, check how Ruth's Hospitality Group scores on these 3 valuation metrics.

Simply Wall St -

Boasting A 42% Return On Equity, Is Ruth's Hospitality Group, Inc. (NASDAQ:RUTH) A Top Quality Stock?

Our data shows Ruth's Hospitality Group has a return on equity of 42% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Ruth's Hospitality Group: 42% = US$42m ÷ US$99m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Ruth's Hospitality Group's Debt And Its 42% Return On Equity Ruth's Hospitality Group has a debt to equity ratio of 0.40, which is far from excessive.

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Ruth's Hospitality Group, Inc. (NASDAQ:RUTH)

(NASDAQ:RUTH) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. With a 2.3% yield and a six-year payment history, investors probably think Ruth's Hospitality Group looks like a reliable dividend stock. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. The company also bought back stock equivalent to around 3.4% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Ruth's Hospitality Group has been paying a dividend for the past six years. … It's good to see Ruth's Hospitality Group has been growing its earnings per share at 15% a year over the past 5 years.

Simply Wall St -

Does Ruth's Hospitality Group (NASDAQ:RUTH) Have A Healthy Balance Sheet?

View our latest analysis for Ruth's Hospitality Group What Is Ruth's Hospitality Group's Net Debt? … NasdaqGS:RUTH Historical Debt, July 1st 2019 How Healthy Is Ruth's Hospitality Group's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching Ruth's Hospitality Group's balance sheet over time.

Simply Wall St -

Estimating The Intrinsic Value Of Ruth's Hospitality Group, Inc. (NASDAQ:RUTH)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $48.71 $50.80 $52.74 $54.58 $56.36 $58.11 $59.85 $61.59 $63.35 $65.14 Growth Rate Estimate Source Est @ 4.96% Est @ 4.29% Est @ 3.82% Est @ 3.49% Est @ 3.26% Est @ 3.1% Est @ 2.99% Est @ 2.91% Est @ 2.86% Est @ 2.82% Present Value ($, Millions) Discounted @ 9.34% $44.54 $42.48 $40.34 $38.18 $36.06 $34.00 $32.02 $30.14 $28.35 $26.66 Present Value of 10-year Cash Flow (PVCF)= $352.78m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$65m × (1 + 2.7%) ÷ (9.3% – 2.7%) = US$1.0b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$1.0b ÷ ( 1 + 9.3%)10 = $414.06m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $766.84m.

Simply Wall St -

Why Ruth's Hospitality Group, Inc.’s (NASDAQ:RUTH) Return On Capital Employed Is Impressive

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Ruth's Hospitality Group: 0.17 = US$53m ÷ (US$410m - US$91m) (Based on the trailing twelve months to March 2019.) Therefore, Ruth's Hospitality Group has an ROCE of 17%. … View our latest analysis for Ruth's Hospitality Group Is Ruth's Hospitality Group's ROCE Good? … What Are Current Liabilities, And How Do They Affect Ruth's Hospitality Group's ROCE?

Simply Wall St -

Here's Why We Think Ruth's Hospitality Group (NASDAQ:RUTH) Is Well Worth Watching

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Ruth's Hospitality Group (NASDAQ:RUTH). … Although Ruth's Hospitality Group certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

Is Ruth's Hospitality Group, Inc.'s (NASDAQ:RUTH) Balance Sheet A Threat To Its Future?

Help shape the future of investing tools and you could win a $250 gift card! … Investors are always looking for growth in small-cap stocks like Ruth's Hospitality Group, Inc. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Company Info

Description

Ruth's Hospitality Group, Inc., together with its subsidiaries, develops, operates, and franchises fine dining restaurants under the Ruth’s Chris Steak House name. Its restaurants offer food and beverage products to special occasion diners and frequent customers, as well as business clientele. As of February 22, 2019, the company had approximately 150 company-owned and franchisee-owned restaurants worldwide. Ruth's Hospitality Group, Inc. was founded in 1965 and is headquartered in Winter Park, Florida.

Details
Name: Ruth's Hospitality Group, Inc.
RUTH
Exchange: NasdaqGS
Founded: 1965
$576,566,066
29,267,313
Website: http://www.rhgi.com
Address: Ruth's Hospitality Group, Inc.
1030 West Canton Avenue,
Suite 100,
Winter Park,
Florida, 32789,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS RUTH Common Stock Nasdaq Global Select US USD 09. Aug 2005
DB R6R Common Stock Deutsche Boerse AG DE EUR 09. Aug 2005
Number of employees
Current staff
Staff numbers
5,408
Ruth's Hospitality Group employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 00:07
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/07
Last earnings filing: 2019/08/02
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.